> For the complete documentation index, see [llms.txt](https://docs.function.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.function.network/function-network/tokenomics.md).

# Tokenomics

FUNC is the **utility token** powering the Function Network, facilitating **staking, rewards, and governance** in a decentralized AI ecosystem.

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## 🔗 **FUNC Token Utility**

1. **🔒 Staking** – Providers and gateways must stake FUNC tokens to participate in the network.
2. **🎁 Rewards** – Staked participants earn FUNC based on their contribution to AI inference.
3. **⚖️ Governance** – Future governance proposals and treasury management may be **FUNC-holder driven**.

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## 💰 **Earning FUNC**

🔹 **Compute providers & gateways** earn FUNC by contributing compute power during each epoch.\
🔹 **Rewards are proportional** to the share of total **shards (work units) contributed**.

### **Example Calculation:**

* **Total epoch reward pool**: 10,000 FUNC
* **Your contribution**: 10% of total shards
* **Your earnings**: 🎯 **1,000 FUNC**

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## 📈 **Economic Design**

### **🔗 Fixed Supply & Scarcity**

* FUNC has a **fixed supply of 1,000,000,000 tokens**, ensuring long-term value retention.
* No inflationary mechanisms. FUNC’s utility is **driven by demand and network participation**.

### **🏦 Treasury & Network Growth**

* The treasury is allocated for **ecosystem development, community initiatives, and staking rewards**.
* Governance mechanisms will allow **FUNC holders to propose and vote on treasury allocation**.

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FUNC fuels **a decentralized, scalable AI network**, ensuring **fair rewards, governance, and long-term sustainability**. 🚀